Seriously? Easy way to get people on board – lure them with a promise to eliminate the IRS and income tax. How typical.
Read the bill – “There is hereby imposed on every specified transaction a fee in an amount equal to 1 percent of the amount of such transaction…The term ‘specified transaction’ means any transaction that uses a payment instrument, including any check, cash, credit card, transfer of stock, bonds, or other financial instrument…
The term ‘transaction’ includes retail and wholesale sales, purchases of intermediate goods, and financial and intangible transactions.”
Sooo, will your employer owe 1% of your paycheck as they send it to your bank? You pay 1% for direct deposit? Move any amount from checking to savings = 1%? Get $20 at the ATM or teller window=1%? How many times can you be taxed on the same amount of money? And when will you say ENOUGH?

All those 1 percents still don’t exceed what is now being payed out in income tax AND sales taxes…(In GA, I’m paying 6% on my income AND 3-7% on my sales taxes.)

With that said, this bill favors people who don’t move money, savers and investors—which most of America isn’t smile. Saving and investing don’t necessarily spark economic growth. I think those two points are better worth an argument.

No, we have a spending problem AND a taxing problem. The current federal income tax system is unfair and punishes the people who produce and rewards the people who sit at home and choose to do nothing. Why should I have to pay $4 out of every $10 that I bring into my household back to the government while Susie down the road gets $5,000 simply because she got pregnant twice when A) there is such a thing as free contraception and B) when she knew she couldn’t afford to take care of them in the first place and now she wants me to pay for her children via the government? The government is more than happy to steal my money to give to the have-nots.

If it’s 1% on every transaction, I’d rather pay that than the 40% to 50% that they’re taxing me at the end of every year.

I am in complete agreement with supporting the bill for a transactional basis. You are only taxed on what you “spend” and it doesn’t penalize you for what you “make”. The reason why so many jobs, businesses, and people send their US Dollars overseas is because of this taxing system. We are one of the most “heavily taxed nations” in the world. We already pay taxes for everything. Taxes on real estate, taxes for your license, sales taxes, taxes on capital gains, taxes for import, et cetera. The list goes on and on forever. The difference between those taxes and “Income Tax” is you choose when to pay it. With income tax they just “Strong Arm” it from you, and leave a bitter taste in you mouth.

As a follow up this current tax system is implemented in all the areas of the Caribbean where the rich hide their money, so why not do what attracts the money? Not to mention it will pay off our national debt in 7 years, (estimated) which will allow us to “Contract” our money supply, and restore faith in our US Dollar (which is plummeting). Currently the only answer is to print now over 1 trillion new US Dollars and devalue our currency by over 40% through the next 25 years. Sometimes you just have to analyze the situation – since 1790 we have only been free of public debt for 2 years (1834-35). Obviously this system is broken and we need to try a new approach

We already have a transaction tax = sales tax.
How about this, abolish the federal reserve, eliminate income tax, and cut government spending by…say, 50% and when our debt is paid off, move the dollar back to the gold standard.
And continue to scale back the government to the size of the constitution.
Semper Fi

What should the government cut to amount to that 50%? (We can start with war spending, certainly, but after that…?)

I’m asking because I honestly want your opinion. I am always hearing, “Cut government spending!” but it is rarely specified how, in any feasible way, that won’t result in a spike in job loss and even greater economic instability.

Here’s a start to reducing government spending. Now keep in mind that its gotta get a lot worse before we can make things better.

Senate and House annual wage total $93,000,000
that’s about 180k/yr per rep.This is salary only and does not include benefits
(I don’t know about you all but I really don’t think they deserve that kind of pay considering the decline of the country over the last 30yrs)
So here’s how it starts:

Each public representative should be paid the median wage for the area he/she represents.

Lets use NY as an example:
Median wage est $60,000/yr
That means our representative will draw a wage of 60,000 dollars.

Using this as an average for mathematical ease we come up with

60,000 × 535 representatives = $32,000,000

This simple adjustment for services rendered by our illustrious vote casters would then save the tax payers $60,000,000 every year.

So there’s the first way to shave off a quick 60 million dollars every year.

We can also cut all the “compensation”. I don’t see anywhere in the Constitution that says that we are to pay for a staff for the FLOTUS. In fact, this is what it says: “The President shall, at stated Times, receive for his Services, a Compensation, which shall neither be increased nor diminished during the Period for which he shall have been elected, and he shall not receive within that Period any other Emolument from the United States, or any of them.”

And here’s what we’re paying for the FLOTUS’ staff:
http://m.factcheck.org/2009/08/michelle-obamas-staff/
Sure, it seems like peanuts in the grand scheme of things, but you can add it to the list with outrageous pensions, etc. What is the presidential pension, anyway? Because, as I read that previous quote from Article II Section I of the Constitution, it says “DURING THE PERIOD FOR WHICH HE SHALL HAVE BEEN ELECTED” (emphasis mine), it doesn’t say we are to continue to pay him when he’s no longer in office. If he wants a retirement plan, he should start one, just like anyone else has to. And from Wikipedia:

“Beginning in 1959, all living former presidents were granted a pension, an office and a staff. The pension has increased numerous times with Congressional approval. Retired presidents now receive a pension based on the salary of the current administration’s cabinet secretaries, which is $191,300 as of 2008.43 Some former presidents have also collected congressional pensions.44 The Former Presidents Act, as amended, also provides former presidents with travel funds and franking privileges.”
So, enough of the extra benefits. If you want to serve your country, DO IT.
In order to cut spending, cutting government bureaucracies, including all the many agencies within the government, and especially non-elected officials, is what I’d call a pretty good step. It worked for Harding and Coolidge.

It is going to help the rich get richer, and the poor get poorer. A Tax when you get your check, taxed when you deposit it, taxed when you take it out, and taxed when you spend it. We are going to pay for the war and bailouts with the sweat off our backs. Don’t be mistaken, this is going to happen. The banks are getting the software ready to implement this. Those of us with social security and retirement that is minimally taxed, but eligible for a refund will now pay far more than before, with a “tax credit” that is non-refundable? 1% sounds so innocent. It’s anything but innocent, it is greed showing it’s ugly head again. The recession has us on our knees now, get ready to be flat on your face.

No way! The middle class is being taxed enough. Veto this! Our country gives enough money away to other countries. Stop that. They don’t appreciate it anyway. Enough is enough. Our country is going down the tubes. Write Obama & your Congressmen. No to this stupid bill!!!!!!

Consider how much we are taxed just for earning money now—so much of our income we never see. So let us imagine that income tax doesn’t exist. Would the 1% to get your check, 1% to deposit it, 1% to withdraw it OR swipe your card somewhere exceed the amount of money that is being sucked away annually in income tax every year? I don’t know about you, but I’m paying MORE THAN 3% PER CHECK in income taxes AND I still pay sales taxes when I spend…

I’m reading these cliches about the rich getting richer off of this bill but no one has given specifics about how. This bill favors the rich NO MORE THAN our current IRS does with its loopholes and inconsistencies.

and ill tell you what, we dont need a tax to replace the income tax, we just need it gone.

we have more government agencies and departments than we can count

get rid of 75% of government, and lets restore the republic, lets print our own money again like we did when this country was started. that was partially the cause of the Revolutionary War, even ben franklin said it himself

This so called 1% tax will end up costing all of us taxpayers a lot more than 1% and probably more than we are currently paying in income taxes. Otherwise why would the government come up with the idea? We all know they need the money to cover the $13+ trillion they spent in the past couple of years. You don’t think they would actually come up with an idea that would save taxpayers money and give them less, do you? And even if for some reason this was actually meant to save us all money by paying less in taxes, don’t you think we would have heard about it in a really big way by now?
Think about it people!

No! The 1% per transaction tax with the “promise” of repealing the income tax is only to get us to accept. Sometime before 2017 they’ll figure this isn’t working like they want it to, and then they’ll make a law to keep the income tax in addition to this tax. And in three years when the 1% is raised to 3%, you’ll start noticing the drain much more quickly….

Of course it doesn’t matter if “we the people” don’t want it. They’ll just cram it down our throats like they did healthcare.

I’m undecided on this. One half of my brain says I’d be saving a ton more in relation to what is taken out currently from income tax. The other half warns me they could get this passed and then decide to keep the income tax at a later date. Not to mention once this tax is implemented what’s to stop them from raising the percentage at a later time? Still undecided…

As I read in more detail, (tell me if I’m wrong here) this bill includes a 1% credit for individuals with an adjusted gross income of $100,000 or less and for joint returns of $250,000 or less. So basically it’s a wash for persons making 100k or less and couples making 250k or less?

If I understand the gist of this, we actually will get taxed twice or possibly three times, once for depositing or cashing our check, possibly to withdraw funds, then to purchase items or services. Sounds like more than 1% to me…

Even more than that if you add a credit card purchase then pay that bill with a check. That would eliminate my crfedit card use! Also, this would start in it’s entirety while the individual income tax would would
be phased out over the next 7 years. Though I’m not opposed to a flat tax, I see no reason to overlap the implementation of a straight flat tax for goods or service purchases (not financial transactions) with the individual tax. Create a clean break from one and immediately implement the other.

Anyone doing the numbers? Your pension deposits $3000. in your account, this ‘tax’ takes $30.; you pay your mortgage of 1500., tax takes 15. and on and on and on. You decide to withdraw 1500. To pay your bills with cash…..tax takes 15. This would be highway robbery and would never come close to making the American people “Debt Free”. Vote for your FREEDOM on Nov.2,2010. God bless us all.

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